Sunday, March 20, 2011

The truth about Hedge Funds

The Truth about Hedge Funds

Myth 1: Hedge funds are highly leveraged.
Fact 1: The market exposure of most hedge funds is less than twice the percentage of assets under management.

Myth 2: The hedge fund industry’s tendency to take excessive risks, combined with a lack of regulation, was an important cause of the financial crisis.
Fact 2: Not only did hedge funds not precipitate the financial crisis, they did nothing to exacerbate it. If anything, hedge funds have helped the economy to recover more quickly.

Myth 3: Most hedge fund managers are billionaires.
Fact 3: Who cares? But if you must know, the average hedge fund manager’s yearly earnings are $336,000.

Definitely worth a whole read

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